New tax provisions that will apply from 2022

In Brief

The Executive Branch formalized on 30 December 2021 five legislative decrees on tax matters, the respective summaries of which are set out below.

In Depth

1. Modification of the tax stability regime regulated in Legislative Decrees No. 662 and 757 (Legal Stability Agreements)

Legislative Decree No. 1516 establishes that from 31 December 2022, the Legal Stability Agreements signed with the state under Legislative Decrees No. 662 and No. 757, will stabilize the Income Tax rate in force at the time of signing of the corresponding contract, plus two percentage points.

This change applies only to applications in progress.

2. Implementation of tax benefits to taxpayers within the scope of the Forestry and Wildlife Law and the General Aquaculture Law

Legislative Decrees No. 1517 and No. 1515 implements the following two tax benefits in order to promote the development of aquaculture and forestry activities, as provided for in Law No. 31110 (Law of the Agrarian Labor Regime): (i) reduced rates of Income Tax; and (ii) accelerated depreciation.

Consequently, from the taxable year 2022, the subjects included within the scope of the Forestry and Wildlife Law and the General Law of Aquaculture will enjoy the following benefits:

a. The following reduced rates for purposes of determining Income Tax according to the amount of their annual net income may apply:

Persons not exceeding 1,700 Tax Units in the taxable year

b. The amount of investments in hydraulic infrastructure works and irrigation works may, until 31 December 2025, depreciate at the rate of 20% annually.

It is specified that the depreciation rate will be applied on the amount of investments in crop infrastructure and water supply channels until 31 December 2025. It also provides that down payments shall be determined in accordance with Article 85 of the Income Tax Law and its regulations.

3. Amendment of the Income Tax Law

Legislative Decree No. 1518 includes a second paragraph to article 48 of the Law on Income Tax, which provides that the non-domiciled companies selling highly migratory hydro-biological resources extracted within and outside the maritime domain of Peru to companies domiciled in Peru will get a net income of Peruvian source equal to 9% of the gross income received for the sale. The Ministry of Production shall periodically determine the list of these resources.

This provision will take effect from 1 January 2022.

4. The validity of tax exemptions and benefits linked to the General Sales Tax (IGV) is extended.

Legislative Decree No. 1519 extends until 31 December 2022, the validity of the exemption from the IGV applicable to the operations contained in Appendixes I and II of the IGV Law.

It also extends until 31 December 2024 the validity of the following:

1. Exemption from IGV for the issuance of electronic money by electronic money issuing companies (Law No. 29985).
2. Legislative Decree No. 783, which approves the rule on the refund of taxes levied on purchases with donations from abroad and imports from diplomatic missions and others.

This Legislative Decree entered into force on 1 January 2022.